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Sacre Bleu! France Collapses Right as Spain, Italy and Greece Become Embroiled in Corruption Scandals

Phoenix Capital Research's picture




 

 

The following is a excerpt from a recent client letter.

 

The house of cards that is Europe is close to collapsing as those widely held responsible for solving the Crisis (Prime Ministers, Treasurers and ECB head Mario Draghi) have all been recently implicated in corruption scandals.

 

Those EU leaders who have yet to be implicated in scandals are not faring much better than their more corrupt counterparts. In France, socialist Prime Minister Francois Hollande, has proven yet again that socialism doesn’t work by chasing after the wealthy and trying to grow France’s public sector… when the public sector already accounts for 56% of French employment.

 

France was already suffering from a lack of competitiveness. Now that wealthy businesspeople are fleeing the country (meaning investment will dry up), the economy has begun to positively implode.

 

The first sign of this came actually came from Germany. As we noted a few months ago, Germany had prepared a working group to examine the impact of an economic collapse in France.

 

German Finance Minister Wolfgang Schaeuble has asked a panel of advisers to look into reform proposals for France, concerned that weakness in the euro zone's second largest economy could come back to haunt Germany and the broader currency bloc.

 

Two officials, speaking on condition of anonymity, told Reuters this week that Schaeuble asked the council of economic advisers to the German government, known as the "wise men", to consider drafting a report on what France should do…

 

"The biggest problem at the moment in the euro zone is no longer Greece, Spain or Italy, instead it is France, because it has not undertaken anything in order to truly re-establish its competitiveness, and is even heading in the opposite direction," Feld said on Wednesday.

 

"France needs labour market reforms, it is the country among euro zone countries that works the least each year, so how do you expect any results from that? Things won't work unless more efforts are made."

 

http://uk.reuters.com/article/2012/11/09/uk-germany-france-economy-idUKBRE8A80MN20121109

 

This German concern has proven to be well founded, as the recent spate of French economic data has been truly horrific.

 

Auto sales for 2012 fell 13% from those of 2011. Sales of existing homes outside of Paris fell 20% year over year for the third quarter of 2012. New home sales fell 25%. Even the high-end real estate markets are collapsing with sales for apartments in Paris that cost over €2 million collapsing an incredible 42% in 2012.

 

 

 

Since the EU Crisis began in 2008, France and Germany have been the two key countries backstopping the implosion. The fact that France is now facing an economic implosion does not bode well for the future of the Euro or the EU.

 

The other sovereign backdrop for the EU, Germany, is also experiencing an economic slowdown.

 

The German economy was hit hard by the euro zone crisis in the final quarter of last year, shrinking more than at any point in nearly three years as traditionally strong exports and investment slowed, the Statistics Office said on Tuesday…

 

Gross domestic product shrank by 0.5 percent in the final three months of 2012, the worst quarterly performance since Germany fell into a recession during the global financial crisis in 2008/2009 and only the second contraction since it ended.

 

The parlous fourth quarter pushed overall growth for the year down to 0.7 percent, a sharp slowdown from the 3.0 percent registered in 2011 and a post-reunification record of 4.2 percent in 2010. The 2012 figure was a tad below a Reuters consensus forecast for growth of 0.8 percent.

 

http://www.reuters.com/article/2013/01/15/us-germany-gdp-idUSBRE90E09Q20130115

 

Thus, we find that Europe’s primary political market props (EU leaders including ECB head Mario Draghi) are coming unraveled at the precise time that EU banks are showing warning signs and the most important EU economies are heading sharply south.

 

2013 is going to be a very interesting year for Europe.

 

We have produced a FREE Special Report available to all investors titled What Europe’s Collapse Means For You and Your Savings.

This report features ten pages of material outlining our independent analysis real debt situation in Europe (numbers far worse than is publicly admitted), the true nature of the EU banking system, and the systemic risks Europe poses to investors around the world.

It also outlines a number of investments to profit from this; investments that anyone can use to take advantage of the European Debt Crisis.

Best of all, this report is 100% FREE. You can pick up a copy today at:

http://gainspainscapital.com/eu-report/

Best

Phoenix Capital Research

 

 

 

 

 

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Thu, 02/07/2013 - 11:39 | 3223007 Voice_Of_Unreason
Voice_Of_Unreason's picture

I just cancelled my holiday to France. You know how they love to riot in the summer ...

Thu, 02/07/2013 - 11:38 | 3222999 ShankyS
ShankyS's picture

Corruption in Italy is out of control - see this Vice video about the Camarra

 

http://www.youtube.com/watch?v=vBHNmw0A80M

Thu, 02/07/2013 - 10:31 | 3222792 DOT
DOT's picture

Germany gives France an "F" for effort.

Trouble coming for the Geropean Zone.

Thu, 02/07/2013 - 10:29 | 3222786 steve from virginia
steve from virginia's picture

 

 

 

"France was already suffering from a lack of competitiveness. Now that wealthy businesspeople are fleeing the country (meaning investment will dry up), the economy has begun to positively implode."

 

Poor France, its workers earn more than Chinese slaves, Sacre Blew! This is not good for French business. Obviously, the thing for the French to do is get on their hands and knees and suck with all their might on the dicks of the wealthy businesspeople.

 

If they suck hard enough perhaps the wealthy businesspeople might come back!

 

Please Mr- and Mrs Wealthy Businessperson, please come back to France and give us one sub-minimum wage job we can all share, we promise to suck yr goddamned cock as hard as we can!

 

Is it possible to promote a pro-tycoon approach more blatantly?

 

 

 

Thu, 02/07/2013 - 12:45 | 3223258 donsluck
donsluck's picture

Employment (by others, ie with a boss) is the trap. Most people cannot manage their own work, it takes too much planning and thinking. Thinking is the most difficult part. That's why we suck up (consume?) so much entertainment. We don't want to quietly think. This will change. As the oligarchs press ever downward on employees, the smartest and most imaginative will break away from employment into the world where you actually take care of yourself. This will lead us back to the time when most people were self-employed.

Thu, 02/07/2013 - 09:56 | 3222692 lakecity55
lakecity55's picture

Both Europe and Amerika will crash. The secret BIS will have its frontmen announce a new one-fits-all monetary unit, available only on a plastic card, no cash or coinage.

 

Thu, 02/07/2013 - 10:13 | 3222742 TSA gropee
TSA gropee's picture

It's all designed to collapse, but not until the pain of global unemployment reaches a point where the sheeple masses will not only accept, but cry out for a remedy, no matter how draconian. The wheel of global enslavement continues to turn...

Thu, 02/07/2013 - 12:41 | 3223235 donsluck
donsluck's picture

Global unemployment is inevitable as productivity rises. We have to move beyond the "employed" mindset into a different paradigm. No-one knows exactly what that will look like, but it won't be "full employment". It simply can't be.

Thu, 02/07/2013 - 09:49 | 3222660 Sudden Debt
Sudden Debt's picture

if we don't talk about it in the press... it isn't really happening RIGHT?!

Thu, 02/07/2013 - 12:43 | 3223244 knukles
knukles's picture

They wouldn't print it if it wasn't true.

Thu, 02/07/2013 - 09:46 | 3222646 Vegetius
Vegetius's picture

And now the French go FULL RETARD.

Tugg Speedman - Wait, what?
Kirk Lazarus - Are you serious, you don't know? Man, everyone knows you never go full retard.
Tugg Speedman - What do you mean?
Kirk Lazarus - Check it out. Dustin Hoffman, Rain Man - looks retarded, acts retarded, not retarded. Counted toothpicks, cheated cars, autistic, sho', not retarded. You got Tom Hanks, Forrest Gump - slow yes, retarded maybe, but he charmed the pants off Nixon and won a ping pong competition, that ain't retarded. Peter Sellers, Being There - infatile yes, retarded no. You went full retard, man... Never go full retard. You don't buy that? Ask Sean Penn, 2001, I Am Sam - went full retard, went home empty handed.


Thu, 02/07/2013 - 09:49 | 3222627 Jack Sheet
Jack Sheet's picture

More high-grade garbage from Phenix Crapitall "Research".
For starters, define " collapse".

Thu, 02/07/2013 - 10:26 | 3222782 phalfa5
phalfa5's picture

burning chicken capitroll management   ....  original thought(less)

Thu, 02/07/2013 - 09:40 | 3222616 Wakanda
Wakanda's picture

Merde!

Thu, 02/07/2013 - 09:19 | 3222568 rsnoble
rsnoble's picture

Meanwhile in the US the Fed and all its bitches are preparing for the next ass raping of what's left.  No kidding.  Most people are preaching of what's coming.......they're positioning to get even richer and more powerful from it.

And yes we can too but not nearly to the extent.  Refer to Greece for the future of the US.

Thu, 02/07/2013 - 03:22 | 3222383 Tekrunner
Tekrunner's picture

In France, socialist Prime Minister Francois Hollande, has proven yet again that socialism doesn’t work by chasing after the wealthy and trying to grow France’s public sector… when the public sector already accounts for 56% of French employment

You're using the same erroneous reasoning as testosteronepit to come up with that number... In 2005 that number was 27% :

http://www.ifrap.org/Emploi-l-administration-confirme-les-7-millions-d-e...

The situation is dire enough, no need to make it look even worse to sell your newsletter...

Thu, 02/07/2013 - 09:34 | 3222599 Haus-Targaryen
Haus-Targaryen's picture

Other than those numbers being 7-8 years old and abjectly worthless, the fact of the matter is the French economic-ecosystem is already too dependent on a government that is already too larger and overburdened with public sector workers -- the fact that it wants to add more is what is worrysome.  

 

I fully expect the Wolfgang Schäuble and his "wise men" to come up with a list of practical and necessary things for the French to impliment to save their economy.  I fully expect the French, primarly because they are French do build a committee to discuss what the Germans suggest and then do exactly nothing.  But yeah -- they built a committee -- cut down unemployment amirite? 

Thu, 02/07/2013 - 12:08 | 3223125 boogerbently
boogerbently's picture

More sensational PCR SPAM.

I'll tell you about others if you buy my newsletter at......

Thu, 02/07/2013 - 11:53 | 3223050 Boris Alatovkrap
Boris Alatovkrap's picture

56% is not public sector employ, is GDP spend on central government.

Thu, 02/07/2013 - 12:36 | 3223216 economics9698
economics9698's picture

Y = C + I - G + NX.

The frogs are learning this the hard way.

Thu, 02/07/2013 - 12:41 | 3223237 knukles
knukles's picture

Fuck the French.
They're big kids (arguably) and should by now know what to do (maybe, aside from the arrogance) so let them stew in their own juices (poach).

I.am.tired.of.financing.everybody's.fucking.vacations.
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